From August onwards, Aiwa's sales increased again. With the introduction of their new products, their market share had increased again. Aiwa's threat to Sony was getting bigger.
Norio Ohga had suggested to Sony's board of directors to terminate their strategic cooperation agreement with Aiwa. This way, they can stop Aiwa's expansion momentum.
Their strategic cooperation included markets, sales channels, production plants, transportation channels, raw material procurement channels, advanced technology, and many other aspects. Even the market pricing was based on them.
Sony was in the lead in many aspects of this cooperation. It can be said that Sony had been pulling Aiwa along for the past two years. But this year, Aiwa will be competing with Sony. What about next year? Will Aiwa overtake Sony?
Although Sony will suffer heavy losses if they were to terminate their strategic cooperation agreement, Panasonic and other companies might take the opportunity to rise. But that was all in the dark. They could already see the rise of AIWA.
Norio Ohga's suggestion made Sony's board of directors discuss among themselves. In the end, the board of directors decided to test Aiwa's stance. If Aiwa does not give in, then they will terminate the agreement and give Aiwa a heavy blow!
Although Sony's Walkman business was a significant part of Sony's current business, Sony was a big company and had many businesses. If this business were to decline temporarily, Aiwa could handle it. But Aiwa was different. They only had Walkman and related businesses. Once this business suffered a setback, Aiwa would be in debt like the past few years.
… …
"What did you say? Sony wants to terminate our strategic cooperation agreement?" Feng Yu received a call from Heitaro Nakajima. He frowned. He did not expect Sony to be so shameless!
But this agreement was signed by Sony, and Aiwa was still controlled by Sony. That's why Sony was lenient on Aiwa. Even if they were to terminate the agreement, they would not suffer any losses.
But this would affect Aiwa greatly. Although Aiwa would not be starting from zero, Aiwa's distribution channels would be affected. Their production costs would increase, and their profits would decrease.
Heitaro Nakajima sounded depressed. He did not expect Sony to use this method to stop Aiwa's growth.
"If Sony breaks the contract, can we still use Sony's channels?"
"Of course, it can still be used. But our transportation, sales, production, warehousing, marketing, technology development, and all other costs will increase. Our new product's promotion will be hindered, and it will severely reduce our sales and profits." Heitaro Nakajima explained.
"Then don't we have some unique channels? How much impact will this have on Sony? "
"Yes. For example, our factories around the world are more advanced than Sony, and our technologies are also more advanced than Sony. Also, with the help of Hong Kong's Aiwa Company, the market share in Asia will be more than 50%. This is Sony's traditional market share. "
Feng Yu was weighing the pros and cons in his mind. Sony was willing to suffer such heavy losses to break the agreement. Seems like Aiwa's development had made Sony feel threatened.
But this was not the first time Feng Yu had seen this in his previous life. Many big companies in the same industry had formed strategic alliances. But once one party felt that they were losing out and wanted better terms, and the other party did not agree, the alliance would be dissolved, and the agreement would be nullified.
To put it bluntly, it was all about profits. In the business world, there are no eternal enemies or friends. There are only eternal profits!
Since Sony was shameless, then let's see who will suffer more losses. Anyway, if Aiwa wants to grow stronger, it will need to depend on Sony. Aiwa was the electronics giant in the future. How can Aiwa be defeated by Sony just because of Walkman?
Sony wants to break the agreement? Then I will let you know that after breaking the agreement, Sony's losses will be higher than Aiwa!
Next year, Sony's electronic products will suffer a heavy blow. Their cooperation with Nintendo will be broken, and Sony will suffer heavy losses in the video game console industry. All the benefits will be taken away by Nintendo.
Sony had broken the agreement with Aiwa, but they will never expect that Nintendo will also break the agreement in the future.
Of course, two years later, Sony will develop another flagship product, PlayStation. But how much will they suffer in two years? What if Aiwa takes the initiative to cooperate with Nintendo?
What does Aiwa have? Technologies and the market. Maybe Aiwa's technologies were not the best in the video game console development. But Aiwa had the market in Hua Xia. Feng Yu believes that within one year, Aiwa will become the market leader in Hua Xia!
Nintendo's products were very popular all over the world. But in Hua Xia, they were struggling. It was not that their products were not good. It was because they could not prevent piracy.
Nintendo's video game consoles were profitable. But the most profitable product was the game cartridges. In Hua Xia, The Little Tyrant suddenly appeared this year. Coupled with its low prices and compatibility with Nintendo's games, Nintendo's market in Hua Xia had shrunk. He could just buy a cheap Little Tyrant and buy pirated games to play. He could play the same game and it would be more worth it. It can be said that The Little Tyrant had blocked all the video game giants from entering Hua Xia.
But The Little Tyrant was still in its infancy. It had not reached the stage where it could dominate the world. The Little Tyrant was relying on its low prices and CCTV's advertising. Two years later, after Jackie Chan was hired to endorse the Little Tyrant, "The Little Tyrant who wishes for his son to be successful", the Little Tyrant will be the market leader in Hua Xia!
But in this lifetime, Feng Yu will not give them the chance to do so. There can only be one electronics giant in Hua Xia, and that will be Aiwa!
Feng Yu told Heitaro Nakajima to speak to Nintendo's President about developing the Hua Xia market. Nintendo might not agree now. But next year, when Aiwa becomes the number one electronics brand in Hua Xia, Nintendo will be tempted.
Now, Feng Yu wants Aiwa to become the number one electronics brand in Hua Xia. First, he must chase Sony out of Hua Xia's market!
… …
"Eh, did you hear about Sony's senior management insulting the Chinese? Damn! Does he think this is decades ago? Even decades ago, when the Japanese invaded Hua Xia, we will chase them away. How dare they be so arrogant now?! "
"Ah? Those Japanese are too despicable. Should we protest? "
"What protest? I heard that Sony wants to enter the Hua Xia market. They want our Hua Xia's electronic products to be unable to sell. We will boycott Sony's products and stop them from selling a single unit!"
"That's right. Boycott Sony's products and chase them out of Hua Xia!"
On the streets, Feng Yu heard two young men saying this, and he smiled. Look at these young men. How nationalistic. Feng Yu had only asked his dealers to spread these rumors among the schools. He did not expect it to be effective so quickly.
Sony's target market was the youngsters. Now, all the youngsters were boycotting Sony. Sony will be finished in Hua Xia!
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